3 ms·
I don't believe anyone who won't buy a bunch of options short the companies they describe as going to collapse. I mean, if you _know_ something is going to coll
by arjie 10y ago
I don't believe anyone who won't buy a bunch of options short the companies they describe as going to collapse. I mean, if you _know_ something is going to collapse, you've got a money-making opportunity. And if it's the total collapse you're predicting, you can make out like a bandit. If you don't have the money to do this, I don't really trust your ability to make money anyway.
That doesn't mean I believe anyone who backs their prediction with money. Necessary but not sufficient condition.
There are thousands saying it's going to the moon tomorrow, and thousands saying it's going to crater tomorrow. Someone's going to be right no matter what. When the cost of failure is zero, everyone's going to have an opinion and there's no way to know if anyone's opinion mirrors their true preference. Their true preference may yet be wrong, but at least it's their true preference, so it may be worthwhile to spend time finding out why and see if it truly applies.